Beware Limited Coverage on Your Aviation Policy
You purchase a plane and then buy the insurance to protect the investment and your liability. Unfortunately, the policy you buy might not actually cover anything. Typically, aviation policies have limitations and warranties that can completely exclude the coverage you think you are purchasing. Specifically, one limitation to coverage is the pilot’s requirement to keep his medical certificate up to date. For example, if a pilot has a Class 1 license, he is required to have a physical exam every six months. A pilot with a Class 2 or 3 license, has to take a physical at least every year or every other year depending on the pilot’s age. In the case of an accident, an insurance loss adjuster will research your medical background to make sure your medical certificate is in compliance.
In addition to the medical requirements, every airplane policy must comply with specific requirements (warranties). For example, some policies require that flight logbooks are maintained. If flight time is not recorded, coverage may be voided. Additionally, some policies require pilots to comply with annual skill validation testing. Other policies require the pilot to have a specific class license or even a certain amount of experience flying a specific make or model of aircraft. These limitations and warranties apply whether you are the pilot or you retain a professional pilot for the plane you own. It is important to review your policy with a professional who is familiar with aviation insurance.